Meritage Midstream Services III, a Canadian affiliate of Meritage Midstream Services, and Canadian International Oil (CIOC) have signed agreements to build natural gas gathering, compression and processing assets and crude oil gathering pipeline to serve production in the Alberta Deep Basin.
Under the deal, Meritage will build 75 million cubic feet per day (MMcf/d) high-pressure gas gathering system to supply a new processing plant, which will be located approximately 60 miles south of Grand Prairie, Alberta.
Planned to be commissioned in April 2016, the plant will be connected to the TransCanada Pipeline and other delivery points, and will have the potential to increase its processing capacity to 225 MMcf/d.
Meritage will also build 10,000 barrels per day (bpd) crude oil gathering system, which will connect to Pembina Pipeline’s Karr Lateral pipeline, designed to serve Pembina’s terminal in the Lator area of northwest Alberta.
The company had started construction on the two systems in May.
Meritage CEO Steve Huckaby said: "These important agreements establish our position in the region and allow us to continue to focus on developing the infrastructure needed to stay ahead of the immediate and long-term needs of our Canadian customers."